Still, brand strategist Reilly Newman is optimistic about the company’s future.
“Costco is a powerhouse,“ he stated in an email to The Epoch Times. ”It is quite possibly one of the most underrated brands.”
Just as it is only starting to flex its e-commerce muscle as the brand evolves, it is, most importantly, staying true to its brand.
Newman believes the crackdown on the multi-use of membership will continue to lift Costco’s profitability, as membership directly reflects its profit.
“As a brand, their focus will remain on their members,” he said. “This strategy will continue to prove effective as it evades the theft issues most retailers are desperately trying to solve while continuing to provide value. Fortunately for Costco, these are all naturally baked within their strategy.”
For Newman, focusing on members will increase value in the warehouse or digital, driving better selection and attracting more members.
“This membership creates a pull for more value and directly impacts profitability,” he said.
“The brand has stayed true to its promise and perception even as it has evolved. This is compounding on many fronts and will continue to drive value for both members and shareholders.”
